Correlation Between Newretail and Chicony Power
Can any of the company-specific risk be diversified away by investing in both Newretail and Chicony Power at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Newretail and Chicony Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newretail Co and Chicony Power Technology, you can compare the effects of market volatilities on Newretail and Chicony Power and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Newretail with a short position of Chicony Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newretail and Chicony Power.
Diversification Opportunities for Newretail and Chicony Power
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newretail and Chicony is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Newretail Co and Chicony Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicony Power Technology and Newretail is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Newretail Co are associated (or correlated) with Chicony Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicony Power Technology has no effect on the direction of Newretail i.e., Newretail and Chicony Power go up and down completely randomly.
Pair Corralation between Newretail and Chicony Power
Assuming the 90 days trading horizon Newretail is expected to generate 1.21 times less return on investment than Chicony Power. In addition to that, Newretail is 1.74 times more volatile than Chicony Power Technology. It trades about 0.02 of its total potential returns per unit of risk. Chicony Power Technology is currently generating about 0.05 per unit of volatility. If you would invest 7,800 in Chicony Power Technology on October 30, 2024 and sell it today you would earn a total of 4,800 from holding Chicony Power Technology or generate 61.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newretail Co vs. Chicony Power Technology
Performance |
| Timeline |
| Newretail |
| Chicony Power Technology |
Newretail and Chicony Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newretail and Chicony Power
The main advantage of trading using opposite Newretail and Chicony Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newretail position performs unexpectedly, Chicony Power can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chicony Power will offset losses from the drop in Chicony Power's long position.| Newretail vs. Tainet Communication System | Newretail vs. Emerging Display Technologies | Newretail vs. C Media Electronics | Newretail vs. PlayNitride |
| Chicony Power vs. Elitegroup Computer Systems | Chicony Power vs. RiTdisplay Corp | Chicony Power vs. Est Global Apparel | Chicony Power vs. China Airlines |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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